How Are Landlords Affected Now That The Consumer Financial Protection Bureau Has Been Told to “stand down from performing any work task” by the President?

This blog post is authored by Atty. Gary D. Koch of Pettit Law Group S.C.

The Consumer Financial Protection Bureau (CFPB) was created in 2011 primarily in response to the 2008 financial crisis and recession. It has been tasked with protecting consumers from unfair financial practices from banks, lenders, other financial companies, and, yes, even landlords. The CFPB was one of the agencies charged with enforcing the CARES Act, and has been active in regulating tenant screening processes.

Earlier this February, the Trump administration ordered that the CFPB’s employees “stand down from performing any work task.” The Bureau’s webpage currently provides a “404: Page not found” message (although the links from the home page, such as “Submit a Complaint” remain active). It is unclear whether any submitted complaint will garner any attention.

From a landlord’s perspective, though, this may have little immediate impact. All of the previously enacted statutes, rules, and regulations remain in place, at least for now. CFPB regulations have not been repealed. The CARES Act is still on the books. Other federal agencies (like the FTC and Department of Justice) still have jurisdiction to pursue landlords for unfair business practices.

The CFPB’s deactivation, though, signals a trend toward reducing and deregulating consumer protections. There may be more action to come.

This federal trend has yet to make it to the state level. The Wisconsin Department of Agriculture, Trade, and Consumer Protection remains active. State Courts are still the venue for evictions and can enforce the CARES Act by dismissing an improperly noticed eviction. Koble has emboldened tenant advocates, although the Wisconsin Supreme Court just accepted the case. However, it is still a good time to be a careful landlord.

The current administration’s philosophy to shrink the federal government is undoubtedly something we will keep our eyes on! We will keep you updated.

This blog post is authored by Atty. Gary D. Koch of Pettit Law Group S.C.

Update On Notices Available To Wisconsin Landlords In Residential Tenancies

Written by Atty. Jennifer Hayden of Pettit Law Group S.C.

By statute, there are several types of notices that a landlord can serve on a tenant if the tenant commits a breach of their Residential Rental Agreement or when the landlord wishes to terminate the tenancy. If your Residential Rental Agreement with the tenant specifies something different, you would want to use the longer notice period.

Most of these notices can be used in periodic tenancies (such as a month-to-month tenancy) as well as a lease for the term (such as a 12-month lease) but under different circumstances. Please be aware that some notices can only be used in periodic tenancies, while others can only be used in leases for term. Most of the notice types cannot be used in a lease for over one year unless the landlord and tenant agree in writing, usually in the Rental Agreement, that specifies that the landlord can serve either a 5-day or 14-day Notice, which we refer to as the “saving language.”

5-DAY NOTICE TO PAY RENT

• Lease for Term (i.e., a lease for a term of one year or less or leases for more than a year with “saving language”)

  Yes (Sec. 704.17(2)(a), Wis. Stats.)

• Periodic Tenancy (i.e., month-to-month)

Yes (Sec. 704.17(1p)(a), Wis. Stats.)

14-DAY NOTICE TERMINATING TENANCY FOR FAILURE TO PAY RENT

• Lease for Term (i.e., a lease for a term of one year or less or leases for more than a year with “saving language”)

Yes, but only if the tenant was served with a 5-day Notice To Pay Rent within the prior 12 months (Sec. 704.17(2)(a), Wis. Stats.)

• Periodic Tenancy (i.e., month-to-month)

Yes (Sec. 704.17(1p)(a), Wis. Stats.)

5-DAY NOTICE TO CORRECT BREACH (other than for non-payment of rent) OR VACATE

• Lease for Term (i.e., a lease for a term of one year or less or leases for more than one year with “saving language”)

Yes (Sec. 704.17(2)(b), Wis. Stats.)

• Periodic Tenancy (i.e., month-to-month)

Yes (Sec. 704.17(1p)(b)(1), Wis. Stats.)

14-DAY NOTICE TERMINATING TENANCY FOR BREACH (other than non-payment of rent)

• Lease for Term (i.e., a lease for a term of one year or less or leases for more than a year with “saving language”)

Yes, but only if the tenant was served with a 5-day Notice To Correct Breach in the prior 12 months (Sec. 704.17(2)(b), Wis. Stats.)

• Periodic Tenancy (i.e., month-to-month)

Yes

5-DAY NOTICE TERMINATING TENANCY FOR CRIMINAL ACTIVITY

• Lease for Term (i.e., a lease for a term of one year or less or lease for a term of one year or more)

Yes (Sec. 704.17(3m)

• Periodic Tenancy (i.e. month-to-month)

Yes (Sec. 704.17(3m)

5-DAY NOTICE TERMINATING TENANCY FOR DRUG OR GANG NUISANCE

• Lease for Term (i.e., a lease for a term of one year or less or lease for a term of one year or more)

Yes (Sec. 704.17(2)(c) and 704.17(3)(b) Wis. Stats.)

• Periodic Tenancy (i.e., month-to-month)

Yes (Sec. 704.17(1p)(c), Wis. Stats.)

5-DAY NOTICE TERMINATING TENANCY OF IMMINENT THREAT OF SERIOUS PHYSICAL HARM

• Lease for Term (i.e., a lease for a term of one year or less or lease for a term of one year or more)

  Yes (Sec. 704.16(3))

• Periodic Tenancy (i.e., month-to-month)

Yes (Sec. 704.16(3))

28-DAY NOTICE

• Lease for Term (i.e., a lease for a term of one year or less or lease for a term of one year or more)

No

• Periodic Tenancy (i.e., month-to-month)

Yes (Sec. 704.19, Wis. Stats.)

30-DAY NOTICE FOR NON-PAYMENT OF RENT OR OTHER BREACH

• Lease for Term (i.e., a lease for a term of one year or less or lease for a term of one year or more)

Should only be used in leases for more than one year that do not contain “saving language”. (Sec. 704.19(3)(a))

• Periodic Tenancy (i.e., month-to-month)

No

NOTICE OF NON-RENEWAL (or Letter Non-Renewing Tenancy)

• Lease for Term (i.e., a lease for a term of one year or less or lease for a term of one year or more)

Yes, to notify the tenant that you will not be renewing their lease. Must be served just like a 5-day or 14-day notice.

• Periodic Tenancy (i.e., month-to-month)

No. For a periodic tenancy, you would issue a 28-day Notice instead of a Notice of Non-Renewal.

IMPLICATIONS OF THE CARES ACT ON NOTICE OPTIONS

As outlined in the November 21, 2024, blog post by Atty. Gary D. Koch of Pettit Law Group S.C., the 30-day Notice Requirement for “Covered Dwelling Units” is still law and will alter your ability to serve a 5-day, 14-day, or 28-day Notice to tenants in “Covered Dwellings.”

As Wisconsin law requires notices to be AT LEAST 5, 14, or 28 days, a notice is not invalid if it provides a tenant with more time. Thus, there is no penalty for complying with the provisions of the CARES Act, even if you were not required to do so. It may be beneficial to err on the side of compliance with the CARES Act when issuing notices if you are unsure if your rental property is a “Covered Dwelling.”

We have maintained that a “curable” 30-day Notice can be used in place of a 5-day Notice and that a “non-curable” 30-day Notice can be used in place of a 14-day Notice to comply with both the CARES Act and Wisconsin Statutes. Some tenant advocates have maintained that all notices under the CARES Act must be curable, but they have not provided our law firm with any support for that assertion.

Written by Atty. Jennifer Hayden of Pettit Law Group S.C.

With the COVID-19 Pandemic Over, Is the CARES Act Still In Effect?

This blog post was written by Atty. Gary D. Koch of Pettit Law Group S.C.

While some effects of the COVID-19 Pandemic may continue to linger, the Public Health Emergency officially ended in May 2023. Does that mean the CARES Act (Coronavirus Aid, Relief and Economic Security Act) is no longer relevant?

Unfortunately, the CARES Act is still relevant for landlords, specifically the 30-day notice period required for “Covered Dwelling Units.”

For a brief recap on the history and some potential issues for not complying with the Act, please see this prior blog post

As a refresher, Section 4024(c)(1) of the CARES Act requires that “[t]he lessor of a covered dwelling unit may not require the tenant to vacate the covered dwelling unit before the date that is 30 days after the date on which the lessor provides the tenant with a notice to vacate.” In short, if your property is a Covered Dwelling Unit (with some government funding or backing), then notices should give the tenant 30 days to act.

There are several reasons why the CARES Act is still in effect.

First, do you remember the eviction moratoria? There were both federal and state-level prohibitions on filing evictions. The federal moratorium was found in the CARES Act, at Section 4024(b), the paragraph immediately preceding the 30-day notice requirement. The moratorium had a delineated end date (120 days from March 27). The provision requiring 30-day notices does not have a delineated end date. Because Congress put an end date to one provision but not the paragraph right after, it is clear that they did not intend for the 30-day notice requirement to expire.

Second, several courts have upheld the 30-day notice provision both before and after the official end to the pandemic. Courts in Washington, Colorado, Ohio, and Indiana all reviewed notices that did not provide the requisite 30 days for Covered Dwelling Units and dismissed the evictions based on the notices.

Finally, both Chambers of Congress have introduced legislation to repeal the 30-day notice provision of the CARES Act. In February 2023, Representative Barry Loudermilk introduced the “Respect State Housing Laws Act” in the House of Representatives. In February 2024, Senator Marco Rubio introduced the same “Respect State Housing Laws Act” in the Senate. Neither bill has yet to pass, but the fact that Congress, the political body that passed the CARES Act, has introduced legislation to repeal portions of it, is strongly suggestive that the CARES Act is still in effect.

While no cases have been decided in Wisconsin directing that the CARES Act is still in effect, laws are generally in effect until a court overturns them. Hence, the lack of a case stating that the CARES Act is in effect is not persuasive. Moreover, as noted in our prior post, there are penalties for not following the CARES Act. There are no penalties, however, for following the CARES Act provisions if you don’t have to. Wisconsin law requires notices of at least 5, 14, or 28 days, and a 30-day notice is not invalid for providing a tenant with too much time.  It may be to your benefit to err on the side of compliance with the CARES Act when it comes to issuing notices.

Atty. Gary D. Koch of Pettit Law Group S.C.

Do you want to know everything about Residential Landlord-Tenant Law in Wisconsin? Then Attend My Landlord Boot Camp on November 16, 2024

Do you want to learn everything there is to know about residential landlord-tenant law in Wisconsin? If so, then you must attend my next Landlord Boot Camp, which will be held on Saturday, November 16th, from 8:30 am - 6 pm at the Sonesta Hotel in Wauwatosa

I will cover everything a landlord needs to know about residential landlord-tenant law in Wisconsin.  We will be covering the all-important topics like:

• Screening and Qualifying the Prospective Applicant and Fair Housing Issues

• Rental Documents

• ATCP 134: Residential Rental Practice Rules and Security Deposits

• Causes for Evictions

• Notices Terminating Tenancy

• The Judicial Eviction Process, and

• Collection of Your Money Judgement (a/k/a How Difficult It Is To Get Paid)

Post-pandemic, a lot of new issues have popped up, which we will also be covering like:

• The CARES Act and whether your rental property is a "covered property" under the Act and what you must do differently.

• The new federal and state focus is on "fees" that landlords are charging tenants and how that can cause trouble for landlords.

• The newer debt collection form that must be used if you are collecting a debt for another

• The rise in tenants appearing in court with attorneys and how this impacts the court process.

• The issue of sealing (redacting of a tenant's name) in eviction actions.

There will be a significant focus on the impact of the Koble case and what you need to do to protect yourself, and what to do if you are sued for allegedly violating one of the “10 Deadly Sins.”

There will also be time for Q+A from 5 pm - 6 pm

You will also receive a PDF of my seminar outline and exhibits totaling more than 100+ pages and which prior attendees have stated is worth the price of admission alone.

I hope you can spend the day with me on Saturday, November 16th.

Please note that Landlord Boot Camp is only offered as an in-person event.  You cannot attend virtually. 

Please visit the Rental Property Association of Wisconsin's website to learn more about pricing and register for Landlord Boot Camp.